2007 California Business and Professions Code Article 2.7. Travel Consumer Restitution Plan

CA Codes (bpc:17550.35-17550.58)

17550.35.  "Restitution corporation" means the Travel Consumer
Restitution Corporation.



17550.36.  "Participant," as used in this article, means a seller of
travel, as defined in Section 17550.7, who is registered pursuant to
Section 17550.20.


17550.37.  (a) "Person aggrieved," as used in this article, means a
passenger, as defined in Section 17550.3, located in California at
the time of sale, or a person located in California at the time of
sale who made any payment on behalf of the passenger for air or sea
transportation or travel services, who has sustained a loss as a
result of the failure of a seller of travel to refund payments made
by or on behalf of a passenger as payment for air or sea
transportation or travel services, where a refund is due as a result
of the bankruptcy, insolvency, cessation of operations, or material
failure to provide the transportation or travel services purchased by
the passenger, regardless of whether the passenger or a person
making payment on behalf of the passenger initially contracted with
that seller of travel. "Loss," as used herein, shall be limited to
losses that are incurred in a transaction with a seller of travel
who, at the time of sale, was a paid-up participant in the Travel
Consumer Restitution Fund and was registered pursuant to Section
17550.20. "Person aggrieved" shall not mean or include a passenger,
or person making payment on behalf of a passenger, in a transaction
where the air or sea transportation or travel services are furnished
by a business entity that is located and providing transportation or
travel services outside of the United States and is not in compliance
with Article 2.6 (commencing with Section 17550).
   (b) Any person aggrieved who files a claim for payment from the
Travel Consumer Restitution Fund thereby waives his or her right to
bring any action at law or equity that is against the seller of
travel as to whom the claim is made and arises from the transaction
that is the subject of the claim against the restitution fund. The
claim form required by Section 17550.46 shall include a clear and
conspicuous notice of the waiver.
   (c) The waiver of rights provided for by subdivision (b) shall not
apply to any claimant whose claim is denied on any of the following
grounds, as set forth in the statement of decision required by
subdivision (d) of Section 17550.47:
   (1) The seller of travel was not, at the time of sale, a paid-up
participant in the Travel Consumer Restitution Fund, as required by
subdivision (a).
   (2) The seller of travel was not, at the time of sale, registered
pursuant to Section 17550.20.
   (3) The claimant was not located in California at the time of
sale, as required by subdivision (a).



17550.38.  (a) It is the purpose of the Travel Consumer Restitution
Corporation to provide restitution to a person aggrieved, subject to
the limitations set forth in this article. The restitution is
secondary only to any relief, compensation, or reimbursement to which
a person aggrieved may be entitled under any of the following:
   (1) A Consumer Protection Deposit Plan, as described in
subdivision (b) of Section 17550.16.
   (2) A Consumer Protection Escrow Plan, as described in subdivision
(c) of Section 17550.16.
   (3) Travel insurance.
   (4) The successful assertion by the person aggrieved of that
person's rights under Section 1747.50 or 1747.90 of the Civil Code or
under Section 226.12 or 226.13 of Title 12 of the Code of Federal
Regulations.
   (b) Nothing in this section shall be construed to require a person
aggrieved to bring a civil action to obtain any relief,
compensation, or reimbursement or to file a crime report with law
enforcement in order to obtain payment from the restitution fund.
   (c) The restitution shall be paid from the Travel Consumer
Restitution Fund established by the Travel Consumer Restitution
Corporation.
   (d) The Travel Consumer Restitution Corporation may request legal
counsel, representation, and advice from the office of the Attorney
General.



17550.39.  (a) Participants shall maintain a corporation under the
Nonprofit Mutual Benefit Corporation Law (Part 3 (commencing with
Section 7110) of Division 2 of Title 1 of the Corporations Code)
operating under the name "Travel Consumer Restitution Corporation."
   (b) The State of California and any of its officers, agents, or
employees shall not be liable in any manner for any act or omission
of Travel Consumer Restitution Corporation, its directors, officers,
agents, or employees.



17550.40.  Each participant is required to comply with the
provisions of this article and shall abide by the rules and decisions
of the Travel Consumer Restitution Corporation adopted in accordance
with this article.


17550.41.  (a) The Board of Directors of the Travel Consumer
Restitution Corporation shall be composed of six directors, as
follows:
   (1) One public consumer representative member appointed by the
Director of Consumer Affairs.
   (2) One employee of the Department of Justice, assigned by the
office of the Attorney General, who shall serve as an ex officio,
nonvoting member.
   (3) Four directors who are participants in the Travel Consumer
Restitution Fund.
   (b) The director appointed pursuant to paragraph (1) of
subdivision (a) shall serve until the appointment is revoked or
another appointment is made, or until the director resigns.
   (c) Participant directors shall be elected by a balloting of all
participants in the Travel Consumer Restitution Fund in an election
to be conducted by the Travel Consumer Restitution Corporation in
February of each year.  Participant directors shall be elected to
serve two-year terms, with two of the four participant directors
being elected each year to staggered two-year terms.
   (d) A person is eligible to be nominated and to serve as a
participant director if the person satisfies all of the following
conditions:
   (1) The person's primary occupation, at the time of nomination and
continuously during the previous three years, has been as the owner
or manager of a seller of travel that is and has been in good
standing both as a registered seller of travel and as a participant
in the Travel Consumer Restitution Fund.
   (2) The person has not been convicted of a crime, including a plea
or verdict of guilty or a conviction following a plea of nolo
contendere.
   (3) The person is not subject to a judgment or administrative
order, whether entered after adjudication or stipulation, predicated
on that person's commission of an act of dishonesty, fraud, deceit,
or violation of this chapter or Chapter 5 (commencing with Section
17200) of Part 2 of Division 7.
   (4) The person is not a defendant in a pending criminal or civil
law enforcement action brought by a public prosecutor.
   (5) The person has not served as a participant director of the
Travel Consumer Restitution Fund at any time during the previous 18
months.
   (6) Within five days after the end of the nomination period, the
person nominated to be a director submits an application to the
Travel Consumer Restitution Fund, signed under penalty of perjury,
that attests to the person's satisfaction of all of the conditions
specified in paragraphs (1) to (5), inclusive.
   (e) The Travel Consumer Restitution Fund may not impose
requirements for nomination to be a participant director in addition
to the requirements described in subdivision (d).
   (f) If a nominee does not satisfy the requirements of subdivision
(d), the Travel Consumer Restitution Fund shall notify the nominee
and the Attorney General in writing, within 30 days of the nominee's
application, that the person has been rejected as a nominee and the
specific grounds for the rejection.
   (g) The nomination period shall be open for the period beginning
90 days and ending 30 days before the election.  Any participant may
nominate for election any participant who is eligible to serve as
provided in subdivision (d).
   (h) The Travel Consumer Restitution Fund shall enable nominees to
submit, within 21 days before the election, written statements of up
to 500 words in a reasonable format concerning their candidacy and
shall mail those statements to participants in the Travel Consumer
Restitution Fund and make those statements publicly available no
later than 14 days before the election by means that may include
disseminating the information on an Internet Web site or providing
the information by electronic mail to any person who has requested
the information and provided a valid electronic mail address.
   (i) A director who does not qualify to be a participant or who
otherwise becomes unable to serve shall not continue to serve as
director.  The board of the Travel Consumer Restitution Corporation
shall adopt rules setting forth the procedures to determine that a
director is no longer able to serve as a director and for the board
to elect a successor to serve as director until the next election.




17550.42.  The fiscal year of the Travel Consumer Restitution
Corporation shall commence on July 1 of each year.



17550.42.  (a) Within 30 days of the close of the fiscal year or
other reasonable period established by the board of directors, the
Travel Consumer Restitution Corporation shall make publicly available
a statement of the following information concerning the most
recently concluded fiscal year:
   (1) The number of claims and approximate dollar amount of the
claims received.
   (2) The total number of claims and total dollar amount of claims
paid.
   (3) The approximate number and dollar amount of claims denied or
abandoned.
   (4) The dollar balance in the restitution fund.
   (5) The amount of assessments received from participants and the
operating and administrative costs and expenses of the corporation.
   (6) The number of new participants and the amount of assessments
received from them.
   (b) The Travel Consumer Restitution Corporation shall make
publicly available within 15 days of the board of directors'
approval, or other reasonable period established by the board of
directors, the following information:
   (1) The approved minutes of meetings of the board of directors.
   (2) The approved estimated annual operational budget projecting
the costs of operations and administration for the succeeding fiscal
year, excluding the amount to be paid for claims.
   (3) The approved bylaws, as amended, of the Travel Consumer
Restitution Corporation.
   (c) Information may be made publicly available as required by this
section by disseminating the information on an Internet Web site or
providing the information by electronic mail to any person who has
requested the information and provided a valid electronic mail
address.


17550.43.  (a) The Travel Consumer Restitution Corporation shall
establish and maintain an operations fund for the payment of costs of
operations and administration.  The corporation shall prepare, prior
to its fiscal yearend, an estimated annual operational budget
projecting the costs of operations and administration for the
succeeding fiscal year, excluding the amount paid for claims.
   (b) (1) All participants making their initial payment of
assessments shall pay to the Travel Consumer Restitution Corporation
an initial, one-time seventy-five dollar () assessment per
location from which the participant does business in the state in
order to provide additional funding for the operations of the
corporation, as those operations are authorized by the corporation's
board of directors.
   (2) All participants making their initial payment of assessments
shall pay to the Travel Consumer Restitution Corporation an initial,
one-time two hundred dollar (0) assessment per location from which
the participant does business in this state in order to provide
additional funding for the restitution fund.
   (c) All participants who were sellers of travel in any year, and
who did not pay a Travel Consumer Restitution Corporation assessment
in that year shall, when making a payment of assessment in a
subsequent year, pay the Travel Consumer Restitution Corporation all
assessments for the operations of the corporation and the restitution
fund for the years in which they were in business as were billed and
paid by participants in those years.
   (d) The Travel Consumer Restitution Corporation shall establish a
restitution fund for the payment of claims.  All claims shall be paid
from the restitution fund.
   (1) The restitution fund shall be in the form of a trust account
maintained in the State of California with a federally insured bank
that shall be selected by the Board of Directors of the Travel
Consumer Restitution Corporation and shall be approved by the office
of the Attorney General.  The Board of Directors of the Travel
Consumer Restitution Corporation or its delegate shall serve as
trustee.
   (2) The restitution fund shall meet the following criteria:
   (A) The trustee shall deposit all restitution funds received into
the trust account.
   (B) The trustee shall maintain a separate accounting for
disbursements and collections on account of claims against each
participant.  Quarterly reports shall be provided to the office of
the Attorney General, Consumer Law Section.
   (C) The trustee shall disburse funds from the trust as directed by
the Travel Consumer Restitution Corporation pursuant to Section
17550.47.
   (D) The trustee may only invest the operations fund and trust
funds in any of the securities described in subdivision (a) or (b) of
Section 16430 of the Government Code.



17550.44.  (a) In addition to the assessments required by Section
17550.43, the Travel Consumer Restitution Corporation shall bill and
collect from each participant an annual assessment that in the
aggregate shall consist of assessments for the operations fund and
the restitution fund.  For each participant, the due date of that
annual assessment shall be 30 days prior to the annual renewal date
for registration pursuant to Section 17550.20 or 45 days after
billing, whichever is later.  For a participant registering for the
first time, the assessments required by Section 17550.43 shall be due
10 days prior to the seller of travel doing business in this state.
A late fee of five dollars () per day, up to a maximum of five
hundred dollars (0), shall be paid for each day after the due date
specified in this section until the assessment is paid.
   (b) The annual assessment for the operations fund shall be
determined no later than January 15 of each year for the next fiscal
year in an amount that does not exceed the amount necessary to fund
the operations and administration of the corporation, based upon the
annual operational budget required by subdivision (a) of Section
17550.43, and shall become effective immediately.  The annual
assessment for the operations fund shall not exceed thirty-five
dollars () per year for each location in the state from which a
participant does business.
   (c) If, as of January 15 of any year, the balance in the
restitution fund is less than one million six hundred thousand
dollars (,600,000), the Travel Consumer Restitution Corporation
shall make an assessment of participants, up to a maximum amount of
two hundred dollars (0) for each location in the state from which
a participant does business, to bring the restitution fund to an
expected balance of one million six hundred thousand dollars
(,600,000).  Every participant's assessment shall be determined pro
rata based upon the ratio of the number of locations in the state
from which the participant does business to the total number of
locations for all participants as of the preceding December 15.
   (d) If, on May 1 or October 15 of any year, the balance in the
restitution fund is less than nine hundred thousand dollars
(0,000), the corporation shall make an emergency assessment of
participants, not more than twice per year, up to a maximum amount of
one hundred fifty dollars (0) per year for each location in the
state from which the participant does business, for deposit in the
trust account to return the level of the restitution fund to an
expected balance of one million six hundred thousand dollars
(,600,000).  The corporation shall estimate the total cost of
billing, collecting, and processing the emergency restitution fund
assessment and shall assess and collect, together with the emergency
restitution fund assessment, an emergency operations fund assessment
that is in the aggregate sufficient to offset the estimated cost.
Each participant's assessments shall be determined pro rata based
upon the ratio of the number of locations in the state from which the
participant does business to the total number of locations for all
participants as of the first day of the preceding month.  The board
of directors shall adopt rules for the notification of emergency
assessments.
   (e) In addition to the assessments required by Section 17550.43
and subdivision (d), if at any time during the fiscal year the board
of directors of the Travel Consumer Restitution Corporation
determines that the operations fund will be insufficient to pay the
costs of operations and administration for the current or next fiscal
year, the corporation, as determined by the board of directors,
shall do either or both of the following:  (A) make an emergency
assessment of participants, not more than once per fiscal year, up to
a maximum amount of sixty-five dollars () per year for each
location in the state from which a participant does business.  The
emergency assessment may be billed and collected either on an
emergency basis from all participants upon the making of the
assessment, or in conjunction with each participant's annual
assessment pursuant to subdivision (a) of Section 17550.44, (B)
transfer any or all interest earned on the Restitution Fund to the
Operations Fund, provided that no transfer results in a restitution
fund balance of less than one million two hundred thousand dollars
(,200,000).
   (f) The assessment required by subdivision (d) or (e) shall be due
45 days from the date the bill for that assessment is mailed by the
Travel Consumer Restitution Corporation.  A late fee of five dollars
() per day, up to a maximum of five hundred dollars (0), shall
be paid for each day after the due date specified in this section
until the assessment is paid.
   (g) The Travel Consumer Restitution Fund shall report to the
office of the Attorney General each levy of assessment within 10
business days after the levy.



17550.45.  (a) If any assessment is not paid within 60 days of the
due date, then the corporation shall notify the office of the
Attorney General, which shall forthwith suspend the registration of
the participant who has not paid.  The corporation shall provide a
copy of this notification to the participant.
   (b) The Travel Consumer Restitution Corporation or any entity set
forth in Section 17204 may bring an action at law or in equity
against a participant to recover any unpaid assessment.
   (c) The Travel Consumer Restitution Corporation shall be awarded
costs and reasonable attorney's fees if it prevails in any action
against a participant pursuant to subdivision (b).  Those costs and
attorney's fees shall be awarded as an item of costs, as provided for
in paragraph (10) of subdivision (a) and paragraph (5) of
subdivision (c) of Section 1033.5 of the Code of Civil Procedure.




17550.46.  (a) The Attorney General or his or her delegate shall
approve any claim form which shall be provided to a person aggrieved
by the Travel Consumer Restitution Corporation to be submitted by a
person aggrieved in order to obtain payment from the restitution
fund.  The claim form shall require the person aggrieved to provide
the corporation with information which is sufficient to decide
whether payment is to be made to that person.  The information must
include all of the following:
   (1) The name, address, and telephone number of the person
aggrieved.
   (2) The date, form, and amount of each payment and evidence
thereof.
   (3) The amount of the claim and specific basis therefor.
   (4) Any written agreements, correspondence, or other documentation
relevant to the transaction and to the transportation or travel
services which were purchased and not provided.
   (5) Identification of the transportation or travel services which
were purchased and not provided.
   (6) Description of any payment or reimbursement or alternative
transportation or travel services received by the person aggrieved
for the transportation or purchased travel services which were not
provided.
   (b) If any required information is unavailable to the person
aggrieved, the person shall so state in the claim form, explaining
why the information is unavailable.  The corporation may require any
other additional information as may be necessary to decide the claim.
  Failure to provide any required information or documentation or an
adequate explanation as to why the information is unavailable shall
constitute grounds for denial of a claim.
   (c) The person aggrieved who submits a claim form shall sign the
form stating, under penalty of perjury pursuant to the laws of the
State of California, that the information contained in the form and
any statements by the person making the claim submitted therewith are
true and correct.



17550.47.  (a) (1) Any person aggrieved who suffers a loss of more
than fifty dollars () of amounts paid for air or sea
transportation or travel services may file a claim with the Travel
Consumer Restitution Corporation by filing a claim form as required
by Section 17550.46 and paying, by check or money order, a processing
fee to the Travel Consumer Restitution Corporation in the amount of
thirty-five dollars ().  Any check for the processing fee that is
returned unpaid to the corporation by the financial institution upon
which it is drawn shall be returned to the claimant and the claim
shall be rejected for filing.  Any claimant whose claim is rejected
may resubmit his or her claim upon payment of a processing fee of
fifty dollars ().
   (2) Any processing fee required by paragraph (1) shall be
nonrefundable except where (A) a claim is denied on the basis as set
forth in the statement of decision that either the seller of travel,
at the time of sale, was not a participant in the Travel Consumer
Restitution Fund or the seller of travel was not registered, or (B)
the claim is granted in whole or in part.  In either case, the
processing fee shall be refunded to the person aggrieved upon denial
or upon payment of the claim, whichever is applicable.
   (3) In no event shall a person aggrieved have more than one year
after the scheduled date of completion of travel within which to file
a claim with the Travel Consumer Restitution Fund.
   (b) A person aggrieved may recover from the Travel Consumer
Restitution Fund an amount not to exceed fifteen thousand dollars
(,000) per person aggrieved, not to exceed the amount paid to the
participant by or on behalf of the person aggrieved for the
transportation or travel services.  Payments from the restitution
fund shall be limited to restitution for sums paid for transportation
or travel services and shall not include any other amounts,
including, but not limited to, payment for lost wages, pain and
suffering, emotional distress, travel insurance, lost luggage, or any
consequential damages.  The person aggrieved shall not be entitled
to receive attorney's fees in connection with a filed claim or on
appeal.
   (c) All claims are to be decided on the written record before the
corporation, with no hearing to be held.  The record shall consist of
a fully executed and complete claim form, any other documentation
submitted by the claimant or the participant, and any documents or
reports submitted by staff or the designated representative of the
office of the Attorney General.  Claims are to be decided within 45
days of receipt unless (1) the designated representative of the
office of the Attorney General requests a continuance to obtain and
submit information, or (2) the Travel Consumer Restitution
Corporation determines that additional information or documentation
is required to decide the claim.  In either case, the claim shall be
decided within 45 days of receipt of all additional information or
documentation.  A claim not decided timely shall be deemed granted.
   (d) Whenever the Travel Consumer Restitution Corporation denies a
claim in whole or in part, it shall provide to the claimant a written
statement of decision setting forth the factual and legal basis for
the denial.
   (e) A claimant may request reconsideration of an adverse decision
of the Travel Consumer Restitution Corporation by mailing a written
request, accompanied by a processing fee of fifty dollars () paid
by check or money order, within 20 days of the date a notice of
denial and statement of decision was mailed to the claimant.  Any
check for the processing fee that is returned unpaid to the Travel
Consumer Restitution Corporation by the financial institution upon
which it is drawn shall be returned to the claimant and the request
for reconsideration shall not be determined until the claimant has
paid the fifty dollar () processing fee.
   (f) The Travel Consumer Restitution Corporation shall, within 60
days of receipt of the request, either decide the request or advise
the claimant that additional information or documentation is needed,
and, if the decision is a denial in whole or in part, it shall
provide to the claimant and seller of travel a written statement of
decision setting forth the factual and legal basis for the decision.
No appeal may be taken pursuant to subdivision (g) until
reconsideration has been requested and decided.  The claimant shall
not be entitled to any attorney's fees incurred in connection with
presentation of a claim or request for reconsideration.
   (g) No decision of the Travel Consumer Restitution Corporation
granting or denying a claim in whole or part shall be subject to
review or appeal except as provided in this section.  A claimant may
seek review of the denial, in whole or part, of a claim by filing a
notice of appeal after having served the notice by mail on the Travel
Consumer Restitution Corporation.  The notice of appeal shall be
filed and served on the Travel Consumer Restitution Corporation not
later than 30 days after a written statement of decision on a request
for reconsideration has been mailed to the claimant.  The notice of
appeal from a decision of the Travel Consumer Restitution Corporation
shall be filed with the clerk of the superior court either in the
county in which the principal place of business of the Travel
Consumer Restitution Corporation is located, or in the county in
which the claimant was a resident at the time the claimant purchased
the transportation or travel services in dispute.
   (h) The claimant shall pay the same filing fee as is required for
appeals from small claims court.  The Travel Consumer Restitution
Corporation shall file its response and the record of the claim
before the corporation with the clerk of the superior court within 30
days of the day the notice of appeal was served on the Travel
Consumer Restitution Corporation.
   (i) Upon the filing of the record the clerk of the court shall
schedule a hearing for the earliest available time and shall mail
written notice of the hearing at least 14 days prior to the time set
for the hearing.
   (j) The hearing on appeal shall be limited to the record before
the Travel Consumer Restitution Corporation and any relevant evidence
that could not have been with reasonable diligence submitted
previously to the corporation.  The reviewing court shall affirm the
decision if it is supported by substantial evidence in light of the
entire record.  The pretrial discovery procedures described in
Section 2019.010 of the Code of Civil Procedure are not permitted,
there is no right to trial by jury, and the decision of the superior
court shall be appealable by either party.  No money may be claimed
from or paid by the Travel Consumer Restitution Fund except in
accordance with the provisions and procedures set forth in this
article.  No provision herein shall limit or otherwise affect those
remedies as may be available against persons or entities other than
the Travel Consumer Restitution Corporation.
   (k) If the claimant prevails in whole or in part on an appeal, the
claimant shall not be entitled to an award in excess of the amount
of the original claim.
   (l) Any claim awarded by the corporation shall be paid promptly by
the trustee of the restitution fund when the time for appeal has
passed.  Any judgment on appeal shall be paid promptly by the trustee
of the restitution fund whenever the judgment becomes final.  If
there should be insufficient funds to pay a claim when otherwise due,
claims shall be paid in the order received.  If the Travel Consumer
Restitution Corporation ceases to operate pursuant to the terms of
Section 17550.52, any remaining trust funds shall be allocated on a
pro rata basis to claims accruing prior to the corporation ceasing to
operate, after payment of outstanding debts and liabilities as
provided in Section 17550.57.
   (m) A claim shall require a majority of at least three affirmative
votes for denial, otherwise it shall be deemed granted.
   (n) (1) A director shall not participate in the decision of a
claim if the director has a financial interest in the outcome of the
decision, has a financial interest in or is employed by the seller of
travel that is the subject of the claim, or has any familial
relationship or close personal friendship with either the claimant or
any owner, officer, director, or manager of the seller of travel
that is the subject of the claim.
   (2) The director shall disclose to the other directors before a
claim is considered all matters that disqualify the director from
participating in the decision of the claim as described in paragraph
(1).



17550.48.  Any person aggrieved who recovers from the fund shall
assign to the Travel Consumer Restitution Corporation all rights of
recovery, to a maximum of the amount received from the Travel
Consumer Restitution Fund, against any person or organization from
which the person aggrieved received any payment as compensation for
any loss for which restitution was paid from the Travel Consumer
Restitution Fund.  The person aggrieved shall execute and deliver to
the corporation instruments and papers and perform any other acts
necessary to carry out this section.  The corporation shall have the
authority and discretion to determine whether or not to seek
recovery.



17550.49.  If the Travel Consumer Restitution Corporation directs
that payment be made from the restitution fund in any amount in
response to a claim against a participant, the corporation shall
inform the office of the Attorney General and shall maintain a record
of all claims paid from the fund.  A list of those sellers of travel
on whose account payment has been made from the fund shall be
provided upon written request.  The corporation shall have the
authority and discretion to determine whether or not to seek recovery
from a seller of travel of any amounts paid from the fund.  The
corporation may seek that recovery by any lawful means, including,
but not limited to, debt collection or civil litigation.  If the
corporation seeks recovery, it shall be entitled to collect from any
seller of travel against which action is taken all reasonable
expenses incurred in taking the action, including attorney's fees.
The corporation shall also be entitled to interest at the rate of 9
percent per year on the amount paid from the fund, together with all
expenses and costs incurred by the corporation in connection with the
claim.



17550.50.  There shall be no personal liability on the part of and
no cause of action of any nature shall arise against the Travel
Consumer Restitution Corporation or the directors, officers,
employees, or agents of the Travel Consumer Restitution Corporation
on any decision to deny a claim for payment from the restitution
fund.



17550.51.  The Travel Consumer Restitution Corporation shall not be
liable for any consequential damages, or for any punitive damages, in
connection with the performance of its restitution function.



17550.52.  The Attorney General or his or her delegate may determine
that the Travel Consumer Restitution Corporation has failed or
ceased to operate upon a finding that any one of the following has
occurred with respect to the corporation:
   (a) Was not created.
   (b) Has been dissolved.
   (c) Has ceased to operate.
   (d) Is insolvent or bankrupt.
   (e) Has failed to pay its operating costs.
   (f) Has failed to pay any claim or judgment in a timely manner.
   (g) Has violated its articles of incorporation or any law of this
state.
   (h) Has invested its funds in violation of this article.
   (i) Has not levied assessments as required by this article.
   (j) Has not diligently decided upon a claim made by a person
aggrieved.
   (k) Has violated any section of this article.
   (l) Has neglected or refused to submit its books, papers, and
affairs to the inspection of the office of the Attorney General.



17550.53.  (a) The Travel Consumer Restitution Corporation shall
have independent authority to investigate claims filed by persons
aggrieved pursuant to Section 17550.47.
   (b) The corporation, upon the request of the office of the
Attorney General, may participate in an examination or investigation
of the books and records of a participant for the purpose of
evaluating a claim related to that seller of travel.  There shall be
no liability on the part of, and no cause of action of any nature
shall arise against, the State of California or any of its employees,
agents, or representatives for the release of any information
furnished to the Travel Consumer Restitution Corporation pursuant to
this subdivision or in connection with the investigation or review of
any claim.
   (c) With the consent of a majority of its directors, the
corporation, in order to fulfill its obligations under this article,
may appoint an independent certified public accountant or public
accountant or hire or appoint a specialized committee or employees to
conduct an examination or investigation authorized by this section.
Any reports as a result thereof shall be furnished to the office of
the Attorney General.
   (d) To assist the corporation in evaluating a claim related to a
participant, the participant shall provide or make available for
inspection by the corporation those books, accounts, bank account
records, and files which are necessary for the corporation to
evaluate the claim.
   (e) The corporation, any participant, an agent of the corporation
or any person other than a law enforcement agency who uses
information obtained under this section for any purpose not
authorized in this article or Article 2.6 (commencing with Section
17550) is guilty of a misdemeanor.
   (f) Costs and expenses for any examination under this section
shall be paid for by the participant if a claim directly related to
that seller of travel has been approved and payment has been made to
a person aggrieved.  The corporation may maintain an action for
recovery of these examination costs and expenses in any court of
competent jurisdiction, and shall recover its reasonable costs and
attorney's fees as an item of costs, as provided for in paragraph
(10) of subdivision (a) and paragraph (5) of subdivision (c) of
Section 1033.5 of the Code of Civil Procedure.



17550.54.  (a) The Secretary of State shall not file articles for
the incorporation of the Travel Consumer Restitution Corporation or
an amendment to the articles unless the office of the Attorney
General has issued written approval of the articles or amendment.
   (b) The Travel Consumer Restitution Corporation shall not adopt
any bylaws or amendments thereto without the written consent of the
office of the Attorney General.  If the office of the Attorney
General does not approve or disapprove any bylaws or amendments
within 60 days of receipt, such bylaws or amendments shall be deemed
to be approved.


17550.55.  No provision of the Insurance Code shall apply to the
Travel Consumer Restitution Corporation.



17550.56.  The operation of the Travel Consumer Restitution
Corporation shall at all times be subject to the examination and
review of the office of the Attorney General and its duly designated
representatives.  The office of the Attorney General and its duly
designated representatives may at any time investigate the affairs
and examine the books, accounts, record, and files used by the
corporation.  The office of the Attorney General and its duly
designated representatives shall have free access to the offices,
books, accounts, papers, records, files, safes, and vaults of the
corporation.



17550.57.  If the Travel Consumer Restitution Corporation is
dissolved or ceases to exist, or if the Attorney General or his or
her delegate makes a determination pursuant to Section 17550.52 that
the corporation has failed or ceased to operate, all outstanding
debts, obligations of the corporation, and amounts due for services
rendered shall first be paid from the remaining assets, including the
restitution fund.  The assets remaining after settling all those
liabilities shall be distributed to the participants, less the costs
of that distribution.  The distribution to participants shall be pro
rata based upon the ratio of the number of locations in the state
from which the participant does business to the total number of
locations for all registered participants at the time the corporation
is dissolved or ceases to exist.



17550.58.  All costs and expenses incurred by the Department of
Justice in the administration of this article, including those
incurred pursuant to Section 17550.38, shall be paid to the
department by the Travel Consumer Restitution Corporation.  The
department may institute an action for the recovery of costs and
expenses incurred in the administration of this article in any court
of competent jurisdiction.